What are the macroeconomic effects of asset purchases?

Martin Weale, Tomasz Wieladek, 10 June 2014

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After policy rates fell close to zero in response to the global financial crisis of 2008-09, the scope for further conventional monetary policy easing was exhausted. As a result, both the Bank of England and the Federal Reserve embarked on large-scale asset purchases of government and financial securities (see Figures 1 and 2).

Topics: Monetary policy
Tags: Bank of England, Federal Reserve, inflation, output, Phillips curve, quantitative easing, unconventional monetary policy

ECB: An appropriate monetary policy

Mickey Levy, 16 May 2014

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Europe’s modest economic recovery and uncomfortably low inflation put the ECB in a bind. Although economic conditions are improving gradually (European Commission 2014), concerns about the potentially negative impacts of deflation persist (Armstrong et al. 2014).

Topics: Monetary policy
Tags: bank lending, ECB, eurozone, monetary policy, quantitative easing

Considering QE, Mario? Buy US bonds, not Eurobonds

Jeffrey Frankel, 24 March 2014

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The ECB should further ease monetary policy. Inflation at 0.8% across the Eurozone is below the target of ‘close to 2%’, and unemployment in most countries is still high. Under the current conditions, it is hard for the periphery countries to bring their costs the rest of the way back down to internationally competitive levels as they need to do.

Topics: Macroeconomic policy, Monetary policy
Tags: ECB, euro, quantitative easing

Clarifying the debate about deflation concerns

Mickey Levy, 21 February 2014

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A common theme among many economic policymakers, financial market participants, and the media is that rich industrialised nations face a high risk of deflation, and that deflation always harms economic performance and so must be combatted with aggressive macroeconomic stimulus. Such broad assessments are misleading, and under certain circumstances may lead to misguided policies.

Topics: Global crisis, Monetary policy
Tags: deflation, disinflation, Europe, eurozone, Japan, quantitative easing, US

Unconventional monetary policy normalisation and emerging-market capital flows

Andrew Burns, Mizuho Kida, Jamus Lim, Sanket Mohapatra, Marc Stocker, 21 January 2014

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Quantitative easing (QE), which started in 2008, swelled the Federal Reserve’s balance sheet to an unprecedented $3.4 trillion. In May 2013, the Fed announced that it would evaluate the possibility of a reversal of its unconventional monetary policies – QE in particular .

Topics: Financial markets, International finance, Monetary policy
Tags: Federal Reserve, quantitative easing, tapering, unconventional monetary policy

Unconventional monetary policies revisited (Part II)

Biagio Bossone, 5 October 2013

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Unconventional monetary policies: From quantitative easing to debt monetisation

Topics: Macroeconomic policy, Monetary policy
Tags: central-bank independence, forward guidance, helicopter money, monetary policy, quantitative easing

The impact on the financial sector of long-term low nominal interest rates

Viral Acharya, Richard Portes, Richard Reid, 3 July 2013

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The Centre for Economic Policy Research (CEPR) recently organised a conference at the Brewers’ Hall, London, on 10 June 2013 titled ‘A long-term environment of low nominal interest rates: what are the consequences for the financial sector’?

Topics: Monetary policy
Tags: Eurozone crisis, liquidity trap, quantitative easing, Vox Views, zero lower bound

Exit strategies: Time to think ahead

Charles Wyplosz, 14 October 2013

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Update

Topics: Monetary policy
Tags: Eurozone crisis, liquidity trap, quantitative easing, Vox Views, zero lower bound

Is inflation targeting dead? Central banking after the Crisis

Lucrezia Reichlin, Richard Baldwin, 14 April 2013

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Before the Crisis, inflation targeting had become the de facto standard framework for monetary policy. Even non-inflation targeters like the ECB and the Federal Reserve built their monetary policy around the idea of commitment to a quantitative objective for medium-term inflation.

Topics: EU institutions, Macroeconomic policy
Tags: central bank independence, inflation targeting, quantitative easing

Helicopter money

Stephen Grenville, 24 February 2013

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In the current debate about monetary policy, two terms are bandied about to the detriment of clarity: ‘printing money’ and ‘helicopter money’ (Sinn 2011).

Topics: Macroeconomic policy, Monetary policy
Tags: Bank of England, fiscal policy, Overt Monetary Finance, QE, quantitative easing

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